RE:RE:RE:Wow what a Buyback in DecAgreed!
Finance 101...a share is worth the present value of future cashflows. Reducing the number of outstanding shares increases cashflow per share all else being equal.
When capex equals non lease depreciation Earnings Per Share (EPS) is a reasonable substitute for Cashflow. This is generally the case for apparel retail.
Investors are interested in EPS growth which is the change in Net Income and the change in Shares outstanding.
On the Net Income portion revenues are currently roughly $16 per share. Hopefully management is targetting a 7% profit margin. There is still a lot of work to get there as I don't see the different brands as Customer focused. I am disappointed with the PENN rebrand but management seem to have the ship pointed in the right direction.
Given meaningfully increasing profits will take time management should be executing the NCIB to the maximum extent possible. A company that buys back deeply undervalued stock transfers wealth from the selling shareholders to the ongoing holders. RET.A recently traded for less than cash. ALL CFOs think EPS is an important scorecard so its bizarre that so little shares are being bought back